Blackstone has secured a sustainability-linked loan (SLL) amounting to A$1.45 billion (US$930 million), the largest of its kind in Australia’s industrial sector.

The loan, coursed through funds managed by Blackstone Real Estate, marks the firm’s first sustainability-linked financing in Asia-Pacific and is part of its efforts to build high-quality, energy-efficient logistics portfolios around the world, according to a company statement.

“We’re proud to be at the forefront of the industrial sector in Australia, where we’ve built a high-quality portfolio of more than 140 logistics assets and executed some of the country’s largest transactions in the sector,” says Chris Tynan, head of Blackstone Real Estate in Australia.

“Blackstone has been a committed investor in Australia for the past decade, supporting local businesses, communities, and economy. This is an important step towards supporting Blackstone’s belief in sustainability as a value creator,” Tynan adds.

Worldwide, Blackstone’s logistics portfolio spans 1.1 billion square feet across major geographies including the United States, Canada, the United Kingdom, India, Greater China, Japan, and Australia.

Eric Duchon, global head of ESG at Blackstone Real Estate, adds: “Blackstone’s scale – especially in the logistics sector – enables us to make a difference in the businesses we invest in. We’re thrilled to secure our first third-party verified SLL in the region, which we believe will improve the performance of our assets, the overall experience for our occupiers, and drive long-term value for our investors.”

MUFG Bank acted as the sole sustainability coordinator and joined Morgan Stanley, National Australia Bank and United Overseas Bank as mandated lead arrangers, underwriters and bookrunners for the transaction.